CHMBER OF COMMERCE WARNS ABOUT ILLIQUIDITY

ZAGREB, Nov 26 (Hina) - The Croatian Chamber of Commerce (HGK) Assembly will petition the Government to seriously debate the state budget, the problem of illiquidity, and exports, HGK president Nadan Vidosevic told the session on Thursday. According to Vidosevic, the problem of illiquidity is a political problem that can be resolved only with a national consensus. "Illiquidity is a global problem, that has been augmented, among else, by a lack of structural harmony, deficit of the trade balance, and trading in cashless shares", Branimir Lokin stressed. Lokin presented the study "Illiquidity of the Global System", which was commissioned by the HGK and Economy Ministry from experts of the Zagreb Faculty of Economy, the Money Transfers Bureau, and the Croatian National Bank. Illiquidity already spread to banks and would soon affect the general population. That proved that we are faced with an acute and growing problem that must be tackled immediately, Lokin stressed. According to Lokin, 45 percent of the real money owned by Croatian companies has been blocked and the companies will soon only have funds for the salaries of their employees. Experts are asking for an urgent intervention by the state. They see two possible solutions: boosting the real money systems through foreign funds mobilised through the emission of bonds, or simultaneously implementing multilateral compensation through multilateral settlements. (hina) mr/ha mm